Exhibit 99.1
Deere & Company
Selected, Recast Segment Financial Data
(In millions)
(Unaudited)
The following is selected, recast segment financial data, reflecting our new segment structure, for the years ended November 1, 2020, November 3, 2019, and October 28, 2018:
Segment Information – as previously reported
| | | | | | | | | | |
| | 2020 | | 2019 | | 2018 | | |||
Net sales and revenues: | | | | | | | | | | |
Agriculture & turf net sales | | $ | 22,325 | | $ | 23,666 | | $ | 23,191 | |
Construction & forestry net sales | | | 8,947 | | | 11,220 | | | 10,160 | |
Financial services revenues | | | 3,589 | | | 3,621 | | | 3,252 | |
Other revenues | | | 679 | | | 751 | | | 755 | |
Total net sales and revenues | | $ | 35,540 | | $ | 39,258 | | $ | 37,358 | |
Operating profit: * | | | | | | | | | | |
Agriculture & turf | | $ | 2,969 | | $ | 2,506 | | $ | 2,816 | |
Construction & forestry | | | 590 | | | 1,215 | | | 868 | |
Financial services | | | 746 | | | 694 | | | 792 | |
Total operating profit | | | 4,305 | | | 4,415 | | | 4,476 | |
Reconciling items ** | | | (472) | | | (310) | | | (381) | |
Income taxes | | | (1,082) | | | (852) | | | (1,727) | |
Net income attributable to Deere & Company | | $ | 2,751 | | $ | 3,253 | | $ | 2,368 | |
Segment Information – as recast
| | | | | | | | | | |
| | 2020 | | 2019 | | 2018 | | |||
Net sales and revenues: | | | | | | | | | | |
Production & precision ag net sales | | $ | 12,962 | | $ | 13,364 | | $ | 13,086 | |
Small ag & turf net sales | | | 9,363 | | | 10,302 | | | 10,105 | |
Construction & forestry net sales | | | 8,947 | | | 11,220 | | | 10,160 | |
Financial services revenues | | | 3,589 | | | 3,621 | | | 3,252 | |
Other revenues | | | 679 | | | 751 | | | 755 | |
Total net sales and revenues | | $ | 35,540 | | $ | 39,258 | | $ | 37,358 | |
Operating profit: * | | | | | | | | | | |
Production & precision ag | | $ | 1,969 | | $ | 1,729 | | $ | 1,897 | |
Small ag & turf | | | 1,000 | | | 777 | | | 919 | |
Construction & forestry | | | 590 | | | 1,215 | | | 868 | |
Financial services | | | 746 | | | 694 | | | 792 | |
Total operating profit | | | 4,305 | | | 4,415 | | | 4,476 | |
Reconciling items ** | | | (472) | | | (310) | | | (381) | |
Income taxes | | | (1,082) | | | (852) | | | (1,727) | |
Net income attributable to Deere & Company | | $ | 2,751 | | $ | 3,253 | | $ | 2,368 | |
* Operating profit is income from continuing operations before corporate expenses, certain external interest expense, certain foreign exchange gains and losses, and income taxes. Operating profit of the financial services segment includes the effect of interest expense and foreign exchange gains and losses.
** Reconciling items are primarily corporate expenses, certain external interest expense, certain foreign exchange gains and losses, pension and postretirement benefit costs excluding the service cost component, and net income attributable to noncontrolling interests.
The following is selected, recast segment financial data, reflecting our new segment structure, for the interim periods of fiscal year 2020:
Segment Information – as previously reported
| | | | | | | | | | | | | |
| | Fiscal Year 2020 | | ||||||||||
| | First | | Second | | Third | | Fourth | | ||||
| | Quarter | | Quarter | | Quarter | | Quarter | | ||||
Net sales and revenues: | | | | | | | | | | | | | |
Agriculture & turf net sales | | $ | 4,486 | | $ | 5,968 | | $ | 5,672 | | $ | 6,198 | |
Construction & forestry net sales | | | 2,044 | | | 2,256 | | | 2,187 | | | 2,461 | |
Financial services revenues | | | 931 | | | 875 | | | 892 | | | 891 | |
Other revenues | | | 170 | | | 154 | | | 174 | | | 181 | |
Total net sales and revenues | | $ | 7,631 | | $ | 9,253 | | $ | 8,925 | | $ | 9,731 | |
Operating profit: * | | | | | | | | | | | | | |
Agriculture & turf | | $ | 373 | | $ | 794 | | $ | 942 | | $ | 860 | |
Construction & forestry | | | 93 | | | 96 | | | 205 | | | 196 | |
Financial services | | | 179 | | | 75 | | | 243 | | | 249 | |
Total operating profit | | | 645 | | | 965 | | | 1,390 | | | 1,305 | |
Reconciling items ** | | | (78) | | | (54) | | | (122) | | | (219) | |
Income taxes | | | (50) | | | (245) | | | (457) | | | (329) | |
Net income attributable to Deere & Company | | $ | 517 | | $ | 666 | | $ | 811 | | $ | 757 | |
Segment Information – as recast
| | | | | | | | | | | | | |
| | Fiscal Year 2020 | | ||||||||||
| | First | | Second | | Third | | Fourth | | ||||
| | Quarter | | Quarter | | Quarter | | Quarter | | ||||
Net sales and revenues: | | | | | | | | | | | | | |
Production & precision ag net sales | | $ | 2,507 | | $ | 3,365 | | $ | 3,289 | | $ | 3,801 | |
Small ag & turf net sales | | | 1,979 | | | 2,603 | | | 2,383 | | | 2,397 | |
Construction & forestry net sales | | | 2,044 | | | 2,256 | | | 2,187 | | | 2,461 | |
Financial services revenues | | | 931 | | | 875 | | | 892 | | | 891 | |
Other revenues | | | 170 | | | 154 | | | 174 | | | 181 | |
Total net sales and revenues | | $ | 7,631 | | $ | 9,253 | | $ | 8,925 | | $ | 9,731 | |
Operating profit: * | | | | | | | | | | | | | |
Production & precision ag | | $ | 218 | | $ | 568 | | $ | 605 | | $ | 578 | |
Small ag & turf | | | 155 | | | 226 | | | 337 | | | 282 | |
Construction & forestry | | | 93 | | | 96 | | | 205 | | | 196 | |
Financial services | | | 179 | | | 75 | | | 243 | | | 249 | |
Total operating profit | | | 645 | | | 965 | | | 1,390 | | | 1,305 | |
Reconciling items ** | | | (78) | | | (54) | | | (122) | | | (219) | |
Income taxes | | | (50) | | | (245) | | | (457) | | | (329) | |
Net income attributable to Deere & Company | | $ | 517 | | $ | 666 | | $ | 811 | | $ | 757 | |
* Operating profit is income from continuing operations before corporate expenses, certain external interest expense, certain foreign exchange gains and losses, and income taxes. Operating profit of the financial services segment includes the effect of interest expense and foreign exchange gains and losses.
** Reconciling items are primarily corporate expenses, certain external interest expense, certain foreign exchange gains and losses, pension and postretirement benefit costs excluding the service cost component, and net income attributable to noncontrolling interests.
The following is selected, recast segment financial data, reflecting our new segment structure, for the special items recorded in fiscal year 2020:
Employee-Separation Programs – as previously reported
| | | | | | | | | | | | | |
| | Fiscal Year 2020 | | ||||||||||
| | Agriculture | | Construction | | Financial | | | | ||||
| | & Turf | | & Forestry | | Services | | Total | | ||||
Cost of sales | | $ | 82 | | $ | 22 | | | | | $ | 104 | |
Research and development expenses | | | 47 | | | 8 | | | | | | 55 | |
Selling, administrative and general expenses | | | 96 | | | 24 | | $ | 15 | | | 135 | |
Other operating expenses | | | | | | | | | | | | 41 | |
Total pretax expenses | | $ | 225 | | $ | 54 | | $ | 15 | | $ | 335 | |
Employee-Separation Programs – as recast
| | | | | | | | | | | | | | | | |
| | Fiscal Year 2020 | | |||||||||||||
| | Production & | | Small Ag | | Construction | | Financial | | | | |||||
| | Precision Ag | | & Turf | | & Forestry | | Services | | Total | | |||||
Cost of sales | | $ | 51 | | $ | 31 | | $ | 22 | | | | | $ | 104 | |
Research and development expenses | | | 29 | | | 18 | | | 8 | | | | | | 55 | |
Selling, administrative and general expenses | | | 53 | | | 43 | | | 24 | | $ | 15 | | | 135 | |
Other operating expenses | | | | | | | | | | | | | | | 41 | |
Total pretax expenses | | $ | 133 | | $ | 92 | | $ | 54 | | $ | 15 | | $ | 335 | |
Impairments and Other Charges – as previously reported
| | | | | | | | | | | | | |
| | Fiscal Year 2020 | | ||||||||||
| | Agriculture | | Construction | | Financial | | | | ||||
| | & Turf | | & Forestry | | Services | | Total | | ||||
Factory closure - Cost of sales | | $ | 20 | | | | | | | | $ | 20 | |
Long-lived asset impairments: | | | | | | | | | | | | | |
Cost of sales | | | 13 | | $ | 80 | | | | | | 93 | |
SA&G expenses | | | 4 | | | | | | | | | 4 | |
Other operating expenses | | | | | | | | $ | 32 | | | 32 | |
Affiliate company impairments - Equity in income (loss) of unconsolidated affiliates | | | | | | 50 | | | | | | 50 | |
Total pretax impairments and closure costs | | $ | 37 | | $ | 130 | | $ | 32 | | $ | 199 | |
Impairments and Other Charges – as recast
| | | | | | | | | | | | | | | | |
| | Fiscal Year 2020 | | |||||||||||||
| | Production & | | Small Ag | | Construction | | Financial | | | | |||||
| | Precision Ag | | & Turf | | & Forestry | | Services | | Total | | |||||
Factory closure - Cost of sales | | | | | $ | 20 | | | | | | | | $ | 20 | |
Long-lived asset impairments: | | | | | | | | | | | | | | | | |
Cost of sales | | | | | | 13 | | $ | 80 | | | | | | 93 | |
SA&G expenses | | $ | 2 | | | 2 | | | | | | | | | 4 | |
Other operating expenses | | | | | | | | | | | $ | 32 | | | 32 | |
Affiliate company impairments - Equity in income (loss) of unconsolidated affiliates | | | | | | | | | 50 | | | | | | 50 | |
Total pretax impairments and closure costs | | $ | 2 | | $ | 35 | | $ | 130 | | $ | 32 | | $ | 199 | |